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Tesco launches 1.74% two-year fixed rate mortgage

The direct-only product represents a market leading two-year fixed rate which is matched only by Chelsea’s own 1.74 per cent mortgage, launched in April.

Tesco has additionally launched a three-year fixed rate of 2.29 per cent and a five-year fix at 2.49 per cent, both up to 60 per cent LTV.

All three new products require payment of a £195 non-refundable booking fee and a £1,300 product fee.

Tesco managing director of banking David McCreadie says: “The new fixed rate and tracker products we have announced today provide outstanding value to customers. We aim to provide customers with a combination of strong rates, competitive fees and the ‘thank you’ of clubcard points, that puts us in a unique position to meet the needs of Tesco customers.”

The lender has also confirmed it has cut rates on a number of its tracker mortgages by up to 1.04 per cent.

The rate on the two-year tracker up to 80 per cent LTV is being cut by 1.04 per cent, from 3.29 per cent to 2.25 per cent, with an £800 product fee.

The rate on the equivalent product, but with a £195 product fee, has also been reduced by 1.04 per cent, from 3.79 per cent to 2.75 per cent. A non-refundable booking fee of £195 applies to both offers.

As the auto-enrolment revolution is rolled out to companies with between 50 and 249 people, employers will be grappling with the new rules and requirements. Even though introducing the new regime can be time consuming, many employers are regarding it as an opportunity to review their benefits packages, with employee health and wellbeing regarded as a popular addition.